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Tuesday, November 06, 2012

Hurricane Sandy’s Lesson on Preserving Capitalism

We are, as they say, live:

Price-gougingHurricane Sandy’s Lesson on Preserving Capitalism: With long gas lines and other shortages putting people on edge in the wake of Hurricane Sandy, the usual post-disaster debate over the economics and ethics of price-gouging is underway.  However, while the question of whether it is okay, even desirable, for businesses to raise prices after natural disasters is certainly important, there is a larger lesson that can be drawn from this debate. ...

The lesson is about when support for price-allocation systems -- the heart of capitalism -- breaks down. More here.

    Posted by on Tuesday, November 6, 2012 at 12:33 AM in Economics, Fiscal Times, Income Distribution, Market Failure | Permalink  Comments (22)

          


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